-2.4 C
New York
Wednesday, January 26, 2022

India Base Metals: Rise on weak rupee, fall in COVID cases in US

Informist, Monday, Oct 4, 2021

 

By Sharathkumar Nair

 

MUMBAI – Futures contracts of base metals on domestic bourses rose because of weakness in the Indian rupee against the dollar and tracking the parent contracts on the London Metal Exchange, as well as fall in new cases in the US, one of the largest base metals consumers in the world.

 

* A weaker Indian unit makes dollar-denominated commodities such as base metals more expensive for domestic buyers. 

 

* Metal contracts surged on LME on likely improved demand from the US. COVID-19 cases in the US have been declining over the past two weeks, the Centers for Disease Control and Prevention said in a recent report. The fall in cases would likely revive economic activity, pushing up the demand for base metals, analysts said.

 

* Tightness in supply of base metals due to the ongoing power crisis in China also pushed prices higher.

* The power crisis in China, caused by a severe shortage of coal, has forced Chinese authorities to restrict power supply to metal smelters in the country. This has created tightness in the supply of base metals globally, pushing prices higher. China is the largest producer of base metals globally.

 

* China aims to achieve carbon neutrality by 2060 and this has led the country to restrict power supply to the industrial sector to meet carbon emission standards.

 

* ALUMINIUM prices rose due to supply crunch amid strong demand. Power rationing by China to aluminium smelters have caused a fall in production, further tightening supply of the metal in global markets. 

 

* COPPER prices rose as economic activity is likely to revive in the US, pushing demand for the red metal higher as COVID-19 cases have started to decline in the country.

 

* At 1745 IST, on the MCX, the September futures contract of

  –Aluminium was at 232 rupees a kg, up 1.7%

  –Copper was at 720.7 rupees a kg, up 1.7%   

  —LEAD was at 183.8 rupees a kg, up 0.4%

  –NICKEL was at 1,400.8 rupees a kg, up 1.1%

  —ZINC was at 256 rupees a kg, up 1.2%

 

* Outlook for the evening session on MCX:

  –Aluminium contract seen 223-261 rupees per kg

  –Copper contract seen 704-744 rupees per kg

  –Lead contract seen 178.6-215.2 rupees per kg

  –Nickel contract seen 1,353-1,440 rupees per kg

  –Zinc contract seen 229-289 rupees per kg

End

 

US$1 = 74.31 rupees

 

Edited by Mainak Moitra

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2021. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,084FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles